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The program is put in an extremely odd and non-helpful governmental area for the excitement of international investment in the United States. We are giving away as well much for too tiny of an investment.

The regional facilities, with their half-million plans, essentially damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to be regarding creating service entities, not easy investments. It must be regarding developing real work, not specify computations regarding the indirect development of jobs, which is now component of the regulations.


Maybe that is one of the reasons it has failed time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also full of intermediaries, both public and private. The program has greater than its share of detractions, which I will certainly get involved in later if anybody is interested.


This is an agency that loves to state yes to candidates, however as the table in my testimony reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that nobody has actually really talked around a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently reason

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Seventh, in this program visas go to individuals that could not obtain them otherwise and to people whose organized financial investment is actually much less, according to the Federal Book, than the ordinary mean net worth of all American households in 2007. Let me expand on among my monitorings.


My price quote based on the investors' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not give the sort of data that we could make use of on this.


So for each $100 of boosted international financial investment that year, the EB program added one cent. Under a far more wobbly analytical base, the first applications of would-be immigrant investors, USCIS is telling reporters that the level of financial investment in the just-concluded year was about $1.2 billion. Let us approve that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the company's migration method group.

Divine worked as Principal Advice of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Deputy Director. He has worked extensively with the EB-5 program in exclusive method. He was chosen, as I understand, vice president of the Association to Invest in USA, the nationwide market organization of regional.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At most, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, yet it is expanding and getting toward that. Particularly as USCIS, the visit this site right here agency that supervises the program, has actually been making the regulations more clear and the procedures a lot more reasonable and clear for the people that are arranging investments EB5 Regional Center Program and for the capitalists that are spending, even more people have actually agreed and able to place initiative and cash into the process to find excellent tasks and develop them, and after that extra investors have been eager to spend their money and take the danger and utilize the cash to produce the tasks that is the point of the program.

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These projects do not linger permanently, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, actually, they are all set to deny applications that are not certifying. And they do so, as was stated

The local center component of the program is not. It belongs to an appropriations bill that my review here was established in 1992, and because then that program has been expanded five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiry in September.


The process takes an excellent while to function up a task and afterwards to get the financiers authorized. And they do not want their cash streaming via until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is already preventing the development of jobs.

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I would like to clarify that the Regional Facility Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 legislation that becomes part of the code. It just is a reality that many of the local centers that are merging financial investments have established those in locations of high joblessness or in country locations where fifty percent- million-dollar investments are enabled, and that makes feeling.